London, UK - 31 October 1997: Tax on passengers departing from British Airports is going to be doubled this Saturday from £5 to £10 for European flights and from £10 to £20 for long haul international flights.

World Travel & Tourism Council President Geoffrey Lipman said "There is absolutely no case for another hike. It is folly to pile taxes onto an industry that can create jobs so successfully. What is urgently required is a more strategic approach."

"There is a danger in these seemingly small tax increases which governments quietly put in place, indiscriminately hitting passengers in order to top up the general budget. What the UK is doing is symptomatic of this."

WTTC tracks 52 destinations around the world. Their findings are that nearly 80% have continuously increased taxes by small amounts that, collectively and over time, have an impact on the growth of Travel & Tourism.

"It's a fact that these increases are small, but passengers are often unaware of them because they are slipped into the ticket price. It's a double whammy with passengers often paying charges imposed at either end," Lipman stated.

Unfortunately, these regular increases which are constantly seen throughout the world indicate that governments have yet to realize the enormous potential of Travel & Tourism to create jobs.

Lipman says that a strategic approach is required where taxation systems are equitable, efficient and simple. Foreign visitors particularly are an export, and it doesn’t make any sense to tax exports, especially when they are normally encouraged.

The modern market theory is pushing taxation systems in the direction of "user pays". If this is to become the norm, then the funds should not be put into general budgets, but be applied to travel infrastructure so that we can achieve sustainable growth.

Even now there is another £2 on the horizon in Home Office proposals to streamline their systems.

"It is time to stop short-changing the public and to stop adding these incremental taxes on the overall system without recognizing the long term implications for employment and job creation.

"WTTC forecasts show that over 300,000 direct and indirect new jobs can be created over the next 10 years in the UK and an additional 2 million in Europe if Travel & Tourism is encouraged. But this is not the way to do it.

At its upcoming Executive Committee on Tuesday 4th November in Paris, the Council will:

• Invite organizations, such as the International Civil Aviation Organization and the International Air Transport Association, to join forces to examine the impact on jobs of these taxation policies.

• Reiterate to national governments and the OECD the need to establish principles of sound and equitable taxation for Travel & Tourism.

 

For further information, please contact:

Geoffrey Lipman/Barbara Cummings, WTTC
Tel: +44 171 838 9400Fax: +44 171 838 9050
E-mail: BarbaraCummings@compuserve.com
http://www.wttc.org

Notes to Editors: The World Travel & Tourism Council (WTTC) is a global coalition of 100 Chief Executive Officers from all sectors of the Travel & Tourism industry including accommodation, catering, cruises, entertainment, recreation, transportation and other travel-related services. Its central goal is to work with governments to realize the full economic impact of the world's largest generator of wealth and jobs - Travel & Tourism. The Council and its Members undertake top-level missions, make proposals and engage in policy discussions with government decision-makers.